**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**———————————**

**FORM        10-Q**

| x |   | **QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE****SECURITIES                  EXCHANGE ACT OF 1934** |
|---|--------|----------------------------------------------------------------------------------------------------------------------------------|

**For        the Quarterly Period Ended March 31, 2006**

**OR**

| o |   | **TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE****SECURITIES                  EXCHANGE ACT OF 1934** |
|---|--------|-----------------------------------------------------------------------------------------------------------------------------------|

**For        the transition period from _______________ to        _______________**

**Commission        File Number 000-30707**

**First        Northern Community Bancorp**

| **California**                                                                  | **68-0450397**                                           |
|---------------------------------------------------------------------------------|----------------------------------------------------------|
| (State                  or other jurisdiction of incorporation or organization) | (I.R.S.                  Employer Identification Number) |

| **195                  N. First Street, Dixon, CA**       | **95620**                   |
|-----------------------------------------------------------|-----------------------------|
| (Address                  of principal executive offices) | (Zip                  Code) |

**707-678-3041**

| **Yes**x | **No** ̈** ** |
|----------|------------------------|

** **

| **Large                  accelerated filer** ̈ | **Accelerated                  filer**x | **Non-accelerated                  filer** ̈ |
|----------------------------------------------------|-----------------------------------------|--------------------------------------------------|

| **Yes** ̈ | **No**x |
|---------------|---------|

----

**FIRST        NORTHERN COMMUNITY BANCORP**

**INDEX**

|                                               |   | **Page**                                                                                                     |
|----------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
|                                               |   |                                                                                                         |
| **PART                  I: FINANCIAL INFORMATION** |   |                                                                                                         |
|                                               |   |                                                                                                         |   |   |
| Item                  1                            |   | Financial                  Statements—Unaudited                                                        |   |   |
|                                               |   |                                                                                                         |   |   |
|                                               |   | Condensed                  Consolidated Balance Sheets                                                       |   | 3 |
|                                               |   |                                                                                                         |   |   |
|                                               |   | Condensed                  Consolidated Statements of Income                                                 |   | 4 |
|                                               |   |                                                                                                         |   |   |
|                                               |   | Condensed                  Consolidated Statement of Stockholders’ Equity and Comprehensive Income     |   | 5 |
|                                               |   |                                                                                                         |   |   |
|                                               |   | Condensed                  Consolidated Statements of Cash Flows                                             |   | 6 |
|                                               |   |                                                                                                         |   |   |
|                                               |   | Notes                  to Unaudited Condensed Consolidated Financial Statements                              |   | 7 |
|                                               |   |                                                                                                         |   |   |
| Item                  2                            |   | Management’s                  Discussion and Analysis of Financial Condition and Results of Operations |   | 14 |
|                                               |   |                                                                                                         |   |   |
| Item                  3                            |   | Quantitative                  and Qualitative Disclosures About Market Risk                                  |   | 22 |
|                                               |   |                                                                                                         |   |   |
| Item                  4                            |   | Controls                  and Procedures                                                                     |   | 22 |
|                                               |   |                                                                                                         |   |   |
| **PART                  II: OTHER INFORMATION**    |   |                                                                                                         |
|                                               |   |                                                                                                         |   |   |
| Item                  1A                           |   | Risk                  Factors                                                                                |   | 23 |
|                                               |   |                                                                                                         |   |   |
| Item                  2                            |   | Unregistered                  Sales of Equity Securities and Use of Proceeds                                 |   | 23 |
|                                               |   |                                                                                                         |   |   |
| Item                  6                            |   | Exhibits                                                                                                     |   | 24 |
|                                               |   |                                                                                                         |   |   |
|                                               |   | Signatures                                                                                                   |   | 24 |

----

**PART        I - FINANCIAL INFORMATION**

**ITEM        1. FINANCIAL STATEMENTS**

***UNAUDITED***
***CONDENSED        CONSOLIDATED BALANCE SHEETS***

| ASSETS                                                                                                                                                                                                                                                  |   |                                  |    |                               |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|------------------------------------|--------|
|                                                                                                                                                                                                                                                    |   |  March                  31, 2006 |    | December                  31, 2005 |   |
|                                                                                                                                                                                                                                                    |   |                                  |    |                               |   |
| Cash                  and due from banks                                                                                                                                                                                                                |   | $                                     | 28,196  |                               | $      | 35,507 |   |
| Federal                  funds sold                                                                                                                                                                                                                     |   |                                  | 73,955  |                               |   | 87,185 |   |
| Investment                  securities - available for sale                                                                                                                                                                                             |   |                                  | 64,095  |                               |   | 48,788 |   |
| Loans,                  net of allowance for loan losses of $7,798                  at March 31, 2006 and $7,917 at December 31, 2005                                                                                                                   |   |                                  | 463,329 |                               |   | 456,061 |   |
| Loans                  held-for-sale                                                                                                                                                                                                                    |   |                                  | 4,702   |                               |   | 4,440 |   |
| Premises                  and equipment, net                                                                                                                                                                                                            |   |                                  | 8,142   |                               |   | 8,311 |   |
| Other                  real estate owned                                                                                                                                                                                                                |   |                                  | — |                               |   | 268 |   |
| Accrued                  interest receivable and other assets                                                                                                                                                                                           |   |                                  | 19,619  |                               |   | 20,087 |   |
| TOTAL                  ASSETS                                                                                                                                                                                                                           |   | $                                     | 662,038 |                               | $      | 660,647 |   |
|                                                                                                                                                                                                                                                    |   |                                  |    |                               |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                   |   |                                  |    |                               |   |   |   |
|                                                                                                                                                                                                                                                    |   |                                  |    |                               |   |   |   |
| Deposits                                                                                                                                                                                                                                                |   |                                  |    |                               |   |   |   |
| Demand                                                                                                                                                                                                                                                  |   | $                                     | 186,300 |                               | $      | 192,436 |   |
| Interest-bearing                  transaction deposits                                                                                                                                                                                                  |   |                                  | 89,739  |                               |   | 85,560 |   |
| Savings                  and MMDA's                                                                                                                                                                                                                     |   |                                  | 193,221 |                               |   | 185,878 |   |
| Time,                  under $100,000                                                                                                                                                                                                                   |   |                                  | 50,938  |                               |   | 51,921 |   |
| Time,                  $100,000 and over                                                                                                                                                                                                                |   |                                  | 68,764  |                               |   | 65,986 |   |
| Total                  deposits                                                                                                                                                                                                                         |   |                                  | 588,962 |                               |   | 581,781 |   |
| FHLB                  Advances and other borrowings                                                                                                                                                                                                     |   |                                  | 10,425  |                               |   | 14,969 |   |
| Accrued                  interest payable and other liabilities                                                                                                                                                                                         |   |                                  | 4,900   |                               |   | 7,095 |   |
| TOTAL                  LIABILITIES                                                                                                                                                                                                                      |   |                                  | 604,287 |                               |   | 603,845 |   |
|                                                                                                                                                                                                                                                    |   |                                  |    |                               |   |   |   |
| Stockholders'                  equity                                                                                                                                                                                                                   |   |                                  |    |                               |   |   |   |
| Common                  stock, no par value; 16,000,000 shares authorized;7,999,835                  shares issued and outstanding at March 31, 2006 and                  7,558,759 shares issued and outstanding at December 31,                  2005 |   |                                  | 47,377  |                               |   | 36,100 |   |
| Additional                  paid in capital                                                                                                                                                                                                             |   |                                  | 977     |                               |   | 977 |   |
| Retained                  earnings                                                                                                                                                                                                                      |   |                                  | 9,475   |                               |   | 19,606 |   |
| Accumulated                  other comprehensive (loss) income, net                                                                                                                                                                                     |   |                                  | (78     | )                                  |   | 119 |   |
| TOTAL                  STOCKHOLDERS' EQUITY                                                                                                                                                                                                             |   |                                  | 57,751  |                               |   | 56,802 |   |
|                                                                                                                                                                                                                                                    |   |                                  |    |                               |   |   |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                             |   | $                                     | 662,038 |                               | $      | 660,647 |   |

----

***UNAUDITED        CONDENSED CONSOLIDATED STATEMENTS OF INCOME***

|                                                                                                |   | Three                  monthsended |   | Three                  monthsended |   |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|
|                                                                                                |   | March                  31, 2006    |   | March                  31, 2005    |   |
|                                                                                                |   |                               |   |                               |   |
| Interest                  Income                                                                    |   |                               |   |                               |   |
| Loans                                                                                               |   | $                                  | 9,684  |                               | $      | 8,022 |   |
| Federal                  funds sold                                                                 |   |                               | 960    |                               |   | 452 |   |
| Investment                  securities                                                              |   |                               |   |                               |   |   |   |
| Taxable                                                                                             |   |                               | 556    |                               |   | 533 |   |
| Non-taxable                                                                                         |   |                               | 131    |                               |   | 147 |   |
| Total                  interest income                                                              |   |                               | 11,331 |                               |   | 9,154 |   |
| Interest                  Expense                                                                   |   |                               |   |                               |   |   |   |
| Deposits                                                                                            |   |                               | 1,805  |                               |   | 945 |   |
| Other                  borrowings                                                                   |   |                               | 134    |                               |   | 123 |   |
| Total                  interest expense                                                             |   |                               | 1,939  |                               |   | 1,068 |   |
| Net                  interest income                                                                |   |                               | 9,392  |                               |   | 8,086 |   |
| (Recovery                  of) provision for loan losses                                            |   |                               | (575   | )                                  |   | 519 |   |
| Net                  interest income after (recovery of) provision for loan                  losses |   |                               | 9,967  |                               |   | 7,567 |   |
|                                                                                                |   |                               |   |                               |   |   |   |
| Other                  operating income                                                             |   |                               |   |                               |   |   |   |
| Service                  charges on deposit accounts                                                |   |                               | 621    |                               |   | 575 |   |
| Gains                  on sales of other real estate owned                                          |   |                               | 7      |                               |   | — |   |
| Gains                  on sales of loans held-for-sale                                              |   |                               | 37     |                               |   | 72 |   |
| Investment                  and brokerage services income                                           |   |                               | 45     |                               |   | 70 |   |
| Mortgage                  brokerage income                                                          |   |                               | 85     |                               |   | 68 |   |
| Loan                  servicing income                                                              |   |                               | 68     |                               |   | 87 |   |
| Fiduciary                  activities income                                                        |   |                               | 33     |                               |   | 24 |   |
| ATM                  fees                                                                           |   |                               | 69     |                               |   | 62 |   |
| Signature                  based transaction fees                                                   |   |                               | 81     |                               |   | 63 |   |
| Other                  income                                                                       |   |                               | 163    |                               |   | 197 |   |
| Total                  other operating income                                                       |   |                               | 1,209  |                               |   | 1,218 |   |
|                                                                                                |   |                               |   |                               |   |   |   |
| Other                  operating expenses                                                           |   |                               |   |                               |   |   |   |
| Salaries                  and employee benefits                                                     |   |                               | 4,543  |                               |   | 3,773 |   |
| Occupancy                  and equipment                                                            |   |                               | 855    |                               |   | 775 |   |
| Data                  processing                                                                    |   |                               | 329    |                               |   | 301 |   |
| Stationery                  and supplies                                                            |   |                               | 123    |                               |   | 115 |   |
| Advertising                                                                                         |   |                               | 216    |                               |   | 97 |   |
| Directors’                  fees                                                              |   |                               | 34     |                               |   | 28 |   |
| Other                  expense                                                                      |   |                               | 1,227  |                               |   | 1,279 |   |
| Total                  other operating expenses                                                     |   |                               | 7,327  |                               |   | 6,368 |   |
|                                                                                                |   |                               |   |                               |   |   |   |
| Income                  before income tax expense                                                   |   |                               | 3,849  |                               |   | 2,417 |   |
| Provision                  for income tax expense                                                   |   |                               | 1,447  |                               |   | 725 |   |
|                                                                                                |   |                               |   |                               |   |   |   |
| Net                  income                                                                         |   | $                                  | 2,402  |                               | $      | 1,692 |   |
| Basic                  Income per share                                                             |   | $                                  | 0.30   |                               | $      | 0.21 |   |
| Diluted                  Income per share                                                           |   | $                                  | 0.29   |                               | $      | 0.20 |   |
|                                                                                                |   |                               |   |                               |   |   |   |

----

***Unaudited        Condensed Consolidated Statement of Stockholders' Equity and Comprehensive        Income***

|   |                                | ComprehensiveIncome | AdditionalPaid-inCapital | RetainedEarnings | AccumulatedOtherComprehensiveIncome                  (Loss) | Total |
|--------|-------------------------------------|---------------------|--------------------------|------------------|-------------------------------------------------------------|-------|
|   |  Common                  Stock |

| Description                                                                                                                               |   | Shares    |    | Amounts |    |   |    |   |    |     |    |   |    |    |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|---------|---------|--------|---------|--------|---------|----------|---------|--------|---------|---------|
|                                                                                                                                      |   |      |    |    |    |   |    |   |    |     |    |   |    |    |
| Balance                  at December 31, 2005                                                                                             |   | 7,558,759 |  $ | 36,100  |    |   |  $ | 977    |  $ | 19,606   |  $ | 119    |  $ | 56,802  |
|                                                                                                                                      |   |      |    |    |    |   |    |   |    |     |    |   |    |    |
| Comprehensive                  income:                                                                                                    |   |      |    |    |    |   |    |   |    |     |    |   |    |    |
| Net                  income                                                                                                               |   |      |    |    | $       | 2,402  |    |   |    | 2,402    |    |   |    | 2,402   |
| Other                  comprehensive loss:                                                                                                |   |      |    |    |    |   |    |   |    |     |    |   |    |    |
| Unrealized                  holding losses arising during the current period, net of tax effect                  of                  $131 |   |      |    |    |    | (197)  |    |   |    |     |    |   |    |    |
| Total                  other comprehensive loss, net of tax effect of $131                                                                |   |      |    |    |    | (197)  |    |   |    |     |    | (197)  |    | (197)   |
| Comprehensiveincome                                                                                                                       |   |      |    |    |  $ | 2,205  |    |   |    |     |    |   |    |    |
|                                                                                                                                      |   |      |    |    |    |   |    |   |    |     |    |   |    |    |
| 6%                  stock dividend                                                                                                        |   | 455,472   |    | 12,525  |    |   |    |   |    | (12,525) |    |   |    | — |
| Cash                  in lieu of fractional shares                                                                                        |   |      |    |    |    |   |    |   |    | (8)      |    |   |    | (8)     |
| Stock-based                  compensation and related tax benefits                                                                        |   |      |    | 301     |    |   |    |   |    |     |    |   |    | 301     |
| Stock                  options exercised, net of swapped shares                                                                           |   | 42,694    |    | — |    |   |    |   |    |     |    |   |    | — |
| Stock                  repurchase and retirement                                                                                          |   | (57,090)  |    | (1,549) |    |   |    |   |    |     |    |   |    | (1,549) |
|                                                                                                                                      |   |      |    |    |    |   |    |   |    |     |    |   |    |    |
| Balance                  at March 31, 2006                                                                                                |   | 7,999,835 |  $ | 47,377  |    |   |  $ | 977    |  $ | 9,475    |  $ | (78)   |  $ | 57,751  |

----

***UNAUDITED        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS***

|                                                                                                                         |   | Three                  monthsended |    | Three                  monthsended |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|---------|------------------------------------|--------|
|                                                                                                                         |   | March                  31, 2006    |    | March                  31, 2005    |   |
| **Operating                  Activities**                                                                                    |   |                               |    |                               |   |
| Net                  Income                                                                                                  |   | $                                  | 2,402   |                               | $      | 1,692 |   |
| Adjustments                  to reconcile net income to net cash provided by (used in)operating                  activities: |   |                               |    |                               |   |   |   |
| Depreciation                                                                                                                 |   |                               | 253     |                               |   | 252 |   |
| (Recovery                  of) provision for loan losses                                                                     |   |                               | (575    | )                                  |   | 519 |   |
| Gain                  on sale of loans                                                                                       |   |                               | (37     | )                                  |   | (72 | ) |
| Gain                  on sale of other real estate owned                                                                     |   |                               | (7      | )                                  |   | — |   |
| Proceeds                  from sales of loans held-for-sale                                                                  |   |                               | 3,260   |                               |   | 10,556 |   |
| Originations                  of loans held-for-sale                                                                         |   |                               | (3,485  | )                                  |   | (12,794 | ) |
| Decrease                  (increase) in accrued interest receivable and other assets                                         |   |                               | 441     |                               |   | (375 | ) |
| Decrease                  in accrued interest payable and other liabilities                                                  |   |                               | (2,195  | )                                  |   | (368 | ) |
| Net                  cash provided by (used in) operating activities                                                         |   |                               | 57      |                               |   | (590 | ) |
|                                                                                                                         |   |                               |    |                               |   |   |   |
| **Investing                  Activities**                                                                                    |   |                               |    |                               |   |   |   |
| Net                  (increase) decrease in investment securities                                                            |   |                               | (15,176 | )                                  |   | 1,699 |   |
| Net                  increase in loans                                                                                       |   |                               | (6,693  | )                                  |   | (22,563 | ) |
| Proceeds                  from sales of other real estate owned                                                              |   |                               | 275     |                               |   | — |   |
| Purchases                  of premises and equipment, net                                                                    |   |                               | (84     | )                                  |   | (301 | ) |
| Net                  cash used in investing activities                                                                       |   |                               | (21,678 | )                                  |   | (21,165 | ) |
|                                                                                                                         |   |                               |    |                               |   |   |   |
| **Financing                  Activities**                                                                                    |   |                               |    |                               |   |   |   |
| Net                  increase in deposits                                                                                    |   |                               | 7,181   |                               |   | 6,453 |   |
| Net                  decrease in FHLB advances and other borrowings                                                          |   |                               | (4,544  | )                                  |   | (168 | ) |
| Cash                  dividends paid                                                                                         |   |                               | (8      | )                                  |   | (9 | ) |
| Repurchase                  of stock                                                                                         |   |                               | (1,549  | )                                  |   | (353 | ) |
| Net                  cash provided by financing activities                                                                   |   |                               | 1,080   |                               |   | 5,923 |   |
|                                                                                                                         |   |                               |    |                               |   |   |   |
| Net                  decrease in cash and cash equivalents                                                                   |   |                               | (20,541 | )                                  |   | (15,832 | ) |
| Cash                  and cash equivalents at beginning of period                                                            |   |                               | 122,692 |                               |   | 116,704 |   |
|                                                                                                                         |   |                               |    |                               |   |   |   |
| Cash                  and cash equivalents at end of period                                                                  |   | $                                  | 102,151 |                               | $      | 100,872 |   |
|                                                                                                                         |   |                               |    |                               |   |   |   |
| Supplemental                  disclosures of cash flow information:                                                          |   |                               |    |                               |   |   |   |
| Cash                  paid during the period for:                                                                            |   |                               |    |                               |   |   |   |
| Interest                                                                                                                     |   | $                                  | 1,946   |                               | $      | 1,086 |   |
| Income                  Taxes                                                                                                |   | $                                  | — |                               | $      | 440 |   |
|                                                                                                                         |   |                               |    |                               |   |   |   |
| Supplemental                  disclosures of non-cash investing and financing                  activities:                   |   |                               |    |                               |   |   |   |
| Stock                  plan accruals                                                                                         |   | $                                  | 95      |                               | $      | 72 |   |
| Tax                  benefit for stock options                                                                               |   | $                                  | 206     |                               | $      | — |   |
| Stock                  dividend distributed                                                                                  |   | $                                  | 12,525  |                               | $      | 6,158 |   |

----

***NOTES        TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL        STATEMENTS***

**March        31, 2006 and 2005 and December 31, 2005**

| 1. | BASIS                  OF PRESENTATION |
|----|----------------------------------------|

*Accounting        Changes and Error Corrections*
*Accounting        Changes*
*Reporting        Changes in Interim Financial Statements*

*Reclassifications*

----

| 2. | ALLOWANCE                  FOR LOAN LOSSES |
|----|--------------------------------------------|

|   | (in                  thousands)                                |
|--------|----------------------------------------------------------------|
|   |                                                           |   |   |
|   | Three                  months ended March                  31, |   | Year                  ended December                  31, |

|                                                     |   | 2006   |   | 2005   |   | 2005   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                     |   |   |   |   |   |   |
| Balance,                  beginning of period            | $      | 7,917  | $      | 7,445  | $      | 7,445  |
| (Recovery                  of) provision for loan losses |   | (575)  |   | 519    |   | 600    |
| Loan                  charge-offs                        |   | (57)   |   | (16)   |   | (855)  |
| Loan                  recoveries                         |   | 513    |   | 114    |   | 727    |
|                                                     |   |   |   |   |   |   |
| Balance,                  end of period                  | $      | 7,798  | $      | 8,062  | $      | 7,917  |

| 3. | MORTGAGE                  OPERATIONS |
|----|--------------------------------------|

|                                       |   | (in                  thousands)    |   |
|--------------------------------------------|--------|------------------------------------|--------|
|                                       |   |                               |   |
|                                       |   | December                  31, 2005 |   | Additions |   | Reductions |   | March                  31, 2006 |   |
|                                       |   |                               |   |   |   |   |   |   |   |
| Mortgage                  servicing rights |   | $                                  | 973    |   | $ | 37 |   | $ | (41 | ) | $ | 969 |   |

----

| 4. | OUTSTANDING                  SHARES AND EARNINGS PER SHARE |
|----|------------------------------------------------------------|

|                                                        |   | Three                  months ended March 31, |      |
|-------------------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                        |   | 2006                                          |      | 2005 |   |
| Basic                  earnings per share:                  |   |                                          |      |   |   |
| Net                  income                                 |   | $                                             | 2,402     |   | $ | 1,692 |   |
|                                                        |   |                                          |      |   |   |   |   |
| Weighted                  average common shares outstanding |   |                                          | 8,027,390 |   |   | 8,102,715 |   |
| Basic                  EPS                                  |   | $                                             | 0.30      |   | $ | 0.21 |   |
| Diluted                  earnings per share:                |   |                                          |      |   |   |   |   |
| Net                  income                                 |   | $                                             | 2,402     |   | $ | 1,692 |   |
|                                                        |   |                                          |      |   |   |   |   |
| Weighted                  average common shares outstanding |   |                                          | 8,027,390 |   |   | 8,102,715 |   |
|                                                        |   |                                          |      |   |   |   |   |
| Effect                  of dilutive options                 |   |                                          | 298,015   |   |   | 247,948 |   |
|                                                        |   |                                          |      |   |   |   |   |
|                                                        |   |                                          | 8,325,405 |   |   | 8,350,663 |   |
| Diluted                  EPS                                |   | $                                             | 0.29      |   | $ | 0.20 |   |

| 5. | STOCK                  OPTION PLAN |
|----|------------------------------------|

----

*Accounting        for Stock-Based *
*Compensation        *
*-*
*        Transition and Disclosure*
*,        an        amendment of FASB Statement No. 123*

|                                                                                                                                                                                                            |   | Three                  months ended March                  31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                                                                                                                                                                                            |   | 2006                                                           |   | 2005 |   |
|                                                                                                                                                                                                            |   |                                                           |   |   |   |
| Net                  income, as reported                                                                                                                                                                        |   | $                                                              | 2,402  |   | $ | 1,692 |   |
|                                                                                                                                                                                                            |   |                                                           |   |   |   |   |   |
| Add:                  Stock-based employee compensation expense included in reported                  netincome,                  net of related tax effects                                                    |   |                                                           | 95     |   |   | 72 |   |
|                                                                                                                                                                                                            |   |                                                           |   |   |   |   |   |
| Deduct:                  Total stock-based employee compensation expense determined under                  fair                  value based method for all awards, net of related tax                  effects |   |                                                           | (95    | ) |   | (90 | ) |
|                                                                                                                                                                                                            |   |                                                           |   |   |   |   |   |
| Pro                  forma net income under SFAS No. 123                                                                                                                                                        |   | $                                                              | 2,402  |   | $ | 1,674 |   |
|                                                                                                                                                                                                            |   |                                                           |   |   |   |   |   |
| Basic                  earnings per share:                                                                                                                                                                      |   |                                                           |   |   |   |   |   |
| As                  reported                                                                                                                                                                                    |   | $                                                              | 0.30   |   | $ | 0.21 |   |
| Pro                  forma under SFAS No. 123                                                                                                                                                                   |   | $                                                              | 0.30   |   | $ | 0.20 |   |
|                                                                                                                                                                                                            |   |                                                           |   |   |   |   |   |
| Diluted                  earnings per share:                                                                                                                                                                    |   |                                                           |   |   |   |   |   |
| As                  reported                                                                                                                                                                                    |   | $                                                              | 0.29   |   | $ | 0.20 |   |
| Pro                  forma under SFAS No. 123                                                                                                                                                                   |   | $                                                              | 0.29   |   | $ | 0.20 |   |

----

|                                                        |   |                              |    |                                             |   |                                       |   |                                                         |       |
|-------------------------------------------------------------|--------|-----------------------------------|---------|--------------------------------------------------|--------|--------------------------------------------|--------|--------------------------------------------------------------|------------|
|                                                        |   | Number                  of Shares |    | Weighted                  Average Exercise Price |   | Aggregate                  Intrinsic Value |   | Weighted                  Average Remaining Contractual Term |       |
|                                                        |   |                              |    |                                             |   |                                       |   |                                                         |       |
| Options                  outstanding at Beginning of Period |   |                              | 602,696 |                                             | $      | 8.84                                       |   |                                                         |       |   |   |   |   |
|                                                        |   |                              |    |                                             |   |                                       |   |                                                         |       |   |   |   |   |
| Granted                                                     |   |                              | 49,290  |                                             |   | 24.53                                      |   |                                                         |       |   |   |   |   |
|                                                        |   |                              |    |                                             |   |                                       |   |                                                         |       |   |   |   |   |
| Cancelled                  / Forfeited                      |   |                              | (10,424 | )                                                |   | 10.48                                      |   |                                                         |       |   |   |   |   |
|                                                        |   |                              |    |                                             |   |                                       |   |                                                         |       |   |   |   |   |
| Exercised                                                   |   |                              | (68,602 | )                                                |   | 7.29                                       |   | $                                                            | 1,235,989  |   |   |   |   |
|                                                        |   |                              |    |                                             |   |                                       |   |                                                         |       |   |   |   |   |
| Options                  outstanding at End of Period       |   |                              | 572,960 |                                             | $      | 10.34                                      |   | $                                                            | 10,347,263 |   |   | 6.46 |   |
|                                                        |   |                              |    |                                             |   |                                       |   |                                                         |       |   |   |   |   |
| Exercisable                  (vested) at End of Period      |   |                              | 397,031 |                                             | $      | 8.02                                       |   | $                                                            | 8,093,536  |   |   | 8.01 |   |

|                                       | Three                  Months Ended March 31, 2006 |
|--------------------------------------------|----------------------------------------------------|
| Risk                  Free Interest Rate   | 4.57%                                              |
|                                       |                                               |
| Expected                  Dividend Yield   | 0.00%                                              |
|                                       |                                               |
| Expected                  Life in Years    | 4.61                                               |
|                                       |                                               |
| Expected                  Price Volatility | 26.37%                                             |

----

|                                       | Three                  Months Ended March 31, 2006 |
|--------------------------------------------|----------------------------------------------------|
| Risk                  Free Interest Rate   | 1.36%                                              |
|                                       |                                               |
| Expected                  Dividend Yield   | 0.00%                                              |
|                                       |                                               |
| Expected                  Life in Years    | 2.00                                               |
|                                       |                                               |
| Expected                  Price Volatility | 23.80%                                             |

----

|                                                     |   | Three                  months ended March 31, |   |
|----------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                     |   | 2006                                          |   | 2005 |   |
| Components                  of Net Periodic Benefit Cost |   |                                          |   |   |   |
| Service                  Cost                            |   | $                                             | 41,146 |   | $ | 40,049 |   |
| Interest                  Cost                           |   |                                          | 16,155 |   |   | 13,321 |   |
| Amortization                  of prior service cost      |   |                                          | 3,257  |   |   | 3,257 |   |
| Net                  periodic benefit cost               |   | $                                             | 60,558 |   | $ | 56,627 |   |

| 7. | FIRST                  NORTHERN BANK OF DIXON - DIRECTORS’ RETIREMENT                  PLAN |
|----|---------------------------------------------------------------------------------------------------|

|                                                     |   | Three                  months ended March 31, |   |
|----------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                     |   | 2006                                          |   | 2005 |   |
| Components                  of Net Periodic Benefit Cost |   |                                          |   |   |   |
| Service                  Cost                            |   | $                                             | 13,518 |   | $ | 18,218 |   |
| Interest                  Cost                           |   |                                          | 5,943  |   |   | 5,233 |   |
| Amortization                  of net loss                |   |                                          | 234    |   |   | 1,295 |   |
| Net                  periodic benefit cost               |   | $                                             | 19,695 |   | $ | 24,746 |   |

----

**ITEM        2.**

**MANAGEMENT’S        DISCUSSION AND ANALYSIS OF**

**FINANCIAL        CONDITION AND RESULTS OF OPERATIONS**

**FORWARD-LOOKING        STATEMENTS**

----

**SUMMARY**

|    | (Amounts                  in thousands, except percentage amounts)      |                            |
|---------|-------------------------------------------------------------------------|---------------------------------|
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  . |                                                                    |                            |   |  Three                  months |  Three                  months |   |   |
|    |                                                                    |                            |   | ended | ended |   |   |   |   |   |   |
|    |                                                                    | March                  31, 2006 | March                  31, 2005 |  |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    | For                  the Period:                                        |                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    | Net                  Income                                             |                            |   | $ | 2,402 |   | $ | 1,692 |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    |  Basic                  Income Per Share*                          | $                               | 0.30 |   | $ | 0.21 |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    | Diluted                  Income per share*                              | $                               | 0.29 |   | $ | 0.20 |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |
|    | Return                  on Average Assets                               |                            | 1.44% |   |   | 1.08% |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    | Net                  Earning / Beginning Equity                         |                            | 16.95% |   |   | 13.29% |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    | At                  Period End:                                         |                            |   |   |   |   |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |
|    | Total                  Assets                                           | $                               | 662,038 |   | $ | 635,428 |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |
|    |  Total                  Loans, Net (including loans held-for-sale) | $                               | 468,031 |   | $ | 455,667 |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    | Total                  Deposits                                         | $                               | 588,962 |   | $ | 563,639 |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |
|    |  Loan-To-Deposit                  Ratio                            | 79.5%                           |   |   | 80.8% |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    | *Adjusted                  for stock splits and dividends               |                            |   |   |   |   |   |   |   |   |   |   |
|    |                                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**CHANGES        IN FINANCIAL CONDITION**

**CHANGES        IN RESULTS OF OPERATIONS**

----

----

|    |                                                               | (in                  thousands) |                            |                                |
|---------|--------------------------------------------------------------------|---------------------------------|---------------------------------|-------------------------------------|
|    |                                                               |                            |                            |                                |   |   |   |   |   |   |   |   |   |   |   |
|  . |                                                               |                            |                            |  Three                  months |  Three                  months |   |   |
|    |                                                               |                            |                            | ended                               | ended |   |   |   |   |   |   |
|    |                                                               |                            | March                  31, 2006 | March                  31, 2005     |   |   |
|    |                                                               |                            |                            |                                |   |   |   |   |   |   |   |   |   |
|    | Other                  miscellaneous operating expenses            |                            |                            |                                |   |   |   |   |   |   |   |   |   |
|    | Provision                  for unfunded lending commitments        | $                               | 100                             |                                | $ | 81  |   |   |   |   |   |   |   |
|    | Accounting                  and audit fees                         |                            | 164                             |                                |   | 189 |   |   |   |   |   |   |   |
|    | Consulting                  fees                                   |                            |                            | 98                                  |   |   | 82 |   |   |   |   |   |   |   |
|    | Postage                  expenseConsulting                  fees   |                            |                            | 92                                  |   |   | 58 |   |   |   |   |   |   |   |
|    | Telephone                  expenseConsulting                  fees |                            |                            | 54                                  |   |   | 53 |   |   |   |   |   |   |   |
|    | Training                  expenseConsulting                  fees  |                            | 63                              |                                |   | 51 |   |   |   |   |   |   |   |
|    | Loan                  origination expense                          |                            | 142                             |                                |   | 252 |   |   |   |   |   |   |   |
|    | Computer                  software depreciation                    |                            | 67                              |                                |   | 62 |   |   |   |   |   |   |   |
|    | Other                  miscellaneous expense                       |                            | 447                             |                                |   | 451 |   |   |   |   |   |   |   |
|    |                                                               |                            |                            |                                |   |   |   |   |   |   |   |   |   |
|    |                                                               |                            |                            |                                |   |   |   |   |   |   |   |   |   |   |   |
|    | Total                  other miscellaneous operating expenses      | $                               | 1,227                           |                                | $ | 1,279 |   |   |   |   |   |   |   |

----

|                                          |   | (in                  thousands) |    |
|-----------------------------------------------|--------|---------------------------------|---------|
|                                          |   |                            |    |   |   |
|                                          |   | March                  31, 2006 |    | December                  31, 2005 |   |
|                                          |   |                            |    |   |   |
| Undisbursed                  loan commitments |   | $                               | 220,121 |   | $ | 203,101 |   |
| Standby                  letters of credit    |   |                            | 17,646  |   |   | 14,077 |   |
|                                          |   | $                               | 237,767 |   | $ | 217,178 |   |

*See        *

----

| Analysis                  of the Allowance for Loan Losses                                                |   |
|-----------------------------------------------------------------------------------------------------------|--------|
| (Amounts                  in thousands, except percentage amounts)                                        |   |
|                                                                                                      |   |   |   |   |   |
|                                                                                                      |   | Three                  months endedMarch                  31, |   | Year                  endedDecember                  31, |   |
| (Amounts                  in thousands except percentage amounts)                                         |   | 2006 |   | 2005 |   | 2005 |   |
|                                                                                                      |   |   |   |   |   |   |   |
| Balance                  at Beginning of Period                                                           |   | $ | 7,917 |   | $ | 7,445 |   | $ | 7,445 |   |
| (Recovery                  of) Provision for Loan Losses                                                  |   |   | (575 | ) |   | 519 |   |   | 600 |   |
| Loans                  Charged-Off:                                                                       |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                |   |   | — |   |   | — |   |   | (670 | ) |
| Agriculture                                                                                               |   |   | — |   |   | — |   |   | — |   |
| Real                  Estate Mortgage                                                                     |   |   | — |   |   | — |   |   | — |   |
| Real                  Estate Construction                                                                 |   |   | — |   |   | — |   |   | — |   |
| Installment                  Loans to Individuals                                                         |   |   | (57 | ) |   | (16 | ) |   | (185 | ) |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Total                  Charged-Off                                                                        |   |   | (57 | ) |   | (16 | ) |   | (855 | ) |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                |   |   | 480 |   |   | — |   |   | 64 |   |
| Agriculture                                                                                               |   |   | — |   |   | 100 |   |   | 663 |   |
| Real                  Estate Mortgage                                                                     |   |   | — |   |   | — |   |   | — |   |
| Real                  Estate Construction                                                                 |   |   | — |   |   | — |   |   | — |   |
| Installment                  Loans to Individuals                                                         |   |   | 33 |   |   | 14 |   |   | — |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Total                  Recoveries                                                                         |   |   | 513 |   |   | 114 |   |   | 727 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Net                  Recoveries (Charge-Offs)                                                             |   |   | 456 |   |   | 98 |   |   | (128 | ) |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Balance                  at End of Period                                                                 |   | $ | 7,798 |   | $ | 8,062 |   | $ | 7,917 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Ratio                  of Net Recoveries (Charge-Offs)                                                    |   |   |   |   |   |   |   |   |   |   |
| To                  Average Loans Outstanding During the Period                                           |   |   | 0.10 | % |   | 0.02 | % |   | (0.03 | %) |
| Allowance                  for Loan Losses                                                                |   |   |   |   |   |   |   |   |   |   |
| To                  Total Loans (Excluding Loans Held-for-sale) at the end                  of the Period |   |   | 1.66 | % |   | 1.74 | % |   | 1.71 | % |
| To                  Non-performing Loans at the end of the Period                                         |   |   | 255.42 | % |   | 156.76 | % |   | 351.71 | % |

----

|   |   | (in                  thousands) |
|--------|--------|---------------------------------|
|   |   |                            |   |   |
|   |   | March                  31, 2006 |   | December                  31, 2005 |

| Three                  months or less        | $      | 32,790 | $      | 30,401 |
|----------------------------------------------|--------|--------|--------|--------|
| Over                  three to twelve months |   | 31,587 |   | 32,129 |
| Over                  twelve months          |   | 4,387  |   | 3,456  |
| Total                                        | $      | 68,764 | $      | 65,986 |

|                               |   |   | Actual |   |   | Well                  Capitalized Ratio Requirement |   | Minimum                  Capital |
|------------------------------------|--------|--------|--------|--------|--------|-----------------------------------------------------|--------|----------------------------------|
| Capital                            |   | Ratio  |
|                               |   |   |   |   |   |                                                |   |                             |
| Leverage                           | $      | 56,192 |   | 8.37%  |   | 5.0%                                                |   | 4.0%                             |
| Tier                  1 Risk-Based | $      | 56,192 |   | 10.30% |   | 6.0%                                                |   | 4.0%                             |
| Total                  Risk-Based  | $      | 62,680 |   | 11.49% |   | 10.0%                                               |   | 8.0%                             |

|                                                         | Three                  months endedMarch                  31, 2006 |   | Three                  months endedMarch                  31, 2005 |   | Year                  endedDecember                  31, 2005 |
|--------------------------------------------------------------|--------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|---------------------------------------------------------------|
| Annualized                  return on average assets         | 1.44%                                                              |   | 1.08%                                                              |   | 1.35%                                                         |
|                                                         |                                                               |   |                                                               |   |                                                          |
| Annualized                  return on beginning core equity* | 16.95%                                                             |   | 13.29%                                                             |   | 17.06%                                                        |

----

*Recent        Accounting Pronouncements*

**ITEM        3.**

**QUANTITATIVE        AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**ITEM        4.**

**CONTROLS        AND PROCEDURES**

----

**PART        II - OTHER INFORMATION**

**ITEM        1A.**

**RISK        FACTORS**

**ITEM        2.**

**UNREGISTERED        SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**Repurchases        of Equity Securities**

|                                            |   | (a)                                              |    | (b)                                                           |   | (c)                                                                                                         |   | (d)                                                                                                              |    |
|-------------------------------------------------|--------|--------------------------------------------------|---------|---------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|---------|
| Period                                          |   | Total                  number of sharespurchased |    | Average                  pricepaid                  per share |   | Number                  of shares purchased as part of publicly announcedplans                  or programs |   | Maximum                  number of shares that may yet be purchased under the plans or                  programs |    |
| January                  1 - January 31, 2006   |   |                                             | — |                                                          | $      | —                                                                                                     |   |                                                                                                             | — |   |   | 58,279 |   |
| February                  1 - February 28, 2006 |   |                                             | 1,577   |                                                          | $      | 24.92                                                                                                       |   |                                                                                                             | 1,577   |   |   | 57,702 |   |
| March                  1 - March 31, 2006       |   |                                             | 58,938  |                                                          | $      | 24.12                                                                                                       |   |                                                                                                             | 58,938  |   |   | 15,743 |   |
| Total                                           |   |                                             | 607,515 |                                                          | $      | 24.14                                                                                                       |   |                                                                                                             | 60,515  |   |   | 15,743 |   |

----

**ITEM        6. **

**EXHIBITS**

| **Exhibit****Number** | **Exhibit**                                                                                                                                                                                                                               |
|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                                                                                                      |
| 31.1                  | Certification                  of the Company’s Chief Executive Officer pursuant to Section 302 of the                  Sarbanes-Oxley                  Act of 2002                                                                 |
| 31.2                  | Certification                  of the Company’s Chief Financial Officer pursuant to Section 302 of the                  Sarbanes-Oxley                  Act of 2002                                                                 |
| 32.1                  | Certification                  of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350,                  as                  adopted pursuantto                  Section 906 of the Sarbanes-Oxley Act of 2002                  |
| 32.2                  | Certification                  of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350,                  as                  adopted pursuantto                  Section 906 of the Sarbanes-Oxley Act of                  2002 |

**SIGNATURES**

|                                                |   | **FIRST                  NORTHERN COMMUNITY BANCORP**                                                      |   |
|-----------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|
|                                                |   |                                                                                                       |   |
| Date:                  May                  9, 2006 | by     | /s/                  Louise A. Walker                                                                      |   |
|                                                |   | Louise                  A. Walker, Sr. Executive Vice President / Chief Financial                  Officer |   |
|                                                |   | (Principal                  Financial Officer and Duly Authorized Officer)                                 |   |

----